Option Millionaires

[retiredMM]

Nolerman

As you know I am Bearish on the market and I'm not as bullish on this economy as the rest of the "pundits". So do I agree with what you posted? Yes.... and no.

I agree that these companies should be lowering guidance (some of them anyway). But as far as I'm concerned these companies at long last have figured out the game. Most stocks now are trading at all time highs (or close to it), so why not jump on the "lower the guidance" bandwagon as we will probably be thrown out with the bath water anyway. We will lower our guidance 10% or more worse than it really is, we will take our lumps here for a month or so and then when we beat our lower #'s we will race to all time highs again!

So these are our options:
1. retain current guidance and when next qtr ER's get released we take a 20%-40% haircut when we miss and we stay there for months
2. we lower guidance to reality and we take a 2%-5% haircut now and then who knows how the market reacts when we post our next er's
3. we guide much lower, we take a 2%-10% haircut now and after a week we start to go back up and find a level and when we beat er's next qtr we zoom to all time highs even though the "beat" is lower than original estimates were.

This is the psychology of the idiots running money - so you might as well take advantage of it as a CEO.